Following the signing of the proposed Social Security System (SSS) amendments increasing contribution rates from 11 percent to 12 percent, the pension fund’s head said it is still not enough to extend the fund’s life until 2045.
During an interview with DZMM, SSS president and CEO Emmanuel Dooc said that the increase in the contribution is only expected to prolong the pension fund’s life to at least 2038.
This, Dooc said, is an indicator that implementing another Php1,000 increase in the monthly pension of its members would be a “challenge”.
“Hindi kami laban sa pagdagdag ng benepisyo, kailangan lang po kayang tustusan o sagutin ng ating pondo,” Dooc said.
Dooc said that when the government implemented a Php1,000 increase in 2017, the pension life’s life was reduced by 10 years adding that the focus for now must be increasing the life of the pension fund.
“Yan po ang ating nasa isip, na dapat talaga mas mapalakas pa ang pondo.” Dooc said.
Under the amended charter, contribution rates shall increase by 1-percentage point every 2 years until it reaches 15 percent in 2025.
Among those who will be covered of SSS mandatory contribution under the new law are overseas Filipino workers (OFWs).
For OFWs, the new law will include mandatory SSS coverage for those under 60 years of age and also includes the expansion of powers of the SSS Commission to determine the monthly contribution of the members, as well as their salary credit.
SSS members who will get terminated from their jobs will also get unemployment insurance.
